Is Wall Street Capital Heading to Solana (SOL)? Market ‘Stirred’ by Morgan Stanley ETF

Solana rises 2.96%... 기대감 over Morgan Stanley ETF and network upgrade

▲ Solana (SOL)/AI generated image ©

Solana (SOL) recorded an above-market average increase, boosted by the launch of Morgan Stanley's Solana spot ETF and the movement of funds into altcoins. With anticipation for the Agave 4.2 upgrade scheduled for August, breaking the 50-day Simple Moving Average (SMA) has emerged as a key factor for further rebound.

According to cryptocurrency market data aggregator CoinMarketCap on August 3 (local time), Solana recorded a 2.96% increase over the past 24 hours, reaching $74.02. It regained the $74 mark, showing a relatively strong upward trend amidst the overall market recovery.

The key driver for the rise is Morgan Stanley's Solana spot ETF, launched on July 28. This product applies a fee of 0.14% and returns 95% of staking rewards to shareholders. Expectations for increased institutional demand grew as traditional financial investors can now invest in Solana through a regulated product and earn staking income.

The movement of funds into the altcoin market also supported the upward trend. CoinMarketCap's Altcoin Season Index rose 11.54% over 24 hours, indicating that funds are circulating from Bitcoin (BTC) to more volatile altcoins. Concurrently, the Solana ecosystem is anticipating the August mainnet launch of Agave 4.2, which will reduce state rent costs by 90% and increase transaction processing speed.

Technically, SOL is using $73.75 as a short-term support level and is testing the resistance zone between the 50-day Simple Moving Average at $74.90 and the 100-day Simple Moving Average at $75.80. If it breaks the 50-day line, it could rise to $77-$78, but if it fails to hold $73.75, it could retest the recent low of $70.70. The daily pivot point is formed at $71.89.

The short-term outlook is 'cautiously bullish,' but the 12.05% decrease in spot trading volume over the past 24 hours is a concern. The actual capital inflow into Solana spot ETFs, the additional launch of similar products, and the increase in on-chain activity after the application of Agave 4.2 will determine the sustainability of the upward trend.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*